What Is the Relationship Between a Bondholder's Rate of Return

question 76

Multiple Choice

What is the relationship between a bondholder's rate of return and the bond's yield to maturity if he does not hold the bond until it matures?

• A)the rate of return will be lower than the yield to maturity.
• B)the rate of return will be higher than the yield to maturity.
• C)the rate of return will equal the yield to maturity.
• D)there is no predetermined relationship between the rate of return and the yield to maturity.

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